Lucid Motors (NASDAQ:LCID) Stock Up 125% YTD: How to Trade Now?
9:34 am Wednesday, August 18th, 2021
Lawsuits are never good news for companies since they bring a degree of uncertainty about the stock among investors. At this point in time, Lucid Motors (NASDAQ:LCID) is in such a situation due to the lawsuit that has been filed against it by Dentons LLP.
In this situation, it might be a good time for investors to take a closer look at the details of the lawsuit. Earlier on this month on August 4, it was announced by Dentons LLP, a worldwide law firm, that it was suing Lucid Motors so that the electric vehicle maker recognized the payments that it was supposed to make in the form of Lucid stock for the work done by the law firm. In the same lawsuit, it was also noted that at the time Lucid Motors was known as Atieva.
It should be noted that back on July 23, the company concluded its merger with Churchill Capital Corp IV. Since the merger, the stock has remained largely flat and that is possibly due to the fact that investors are possibly a bit spooked about the Dentons lawsuit. After all, no investor wants to be involved with a company whose future might be tied to a lawsuit.
While there may be investors who might think that the lawsuit is not something to be overly worried about, one should remember that lawsuits had affected the Lordstown Motors and Nikola Corporation stocks. Those are some cautionary take that investors need to keep in mind when considering the Lucid Motors stock.
